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S3595 • 2026

Provides gross income tax exclusion for minimum required distributions from qualified retirement plans.

Provides gross income tax exclusion for minimum required distributions from qualified retirement plans.

Budget Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Bucco, Anthony M.
Last action
2026-02-19
Official status
Introduced in the Senate, Referred to Senate Budget and Appropriations Committee
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Provides gross income tax exclusion for minimum required distributions from qualified retirement plans.

Provides gross income tax exclusion for minimum required distributions from qualified retirement plans.

What This Bill Does

  • Provides gross income tax exclusion for minimum required distributions from qualified retirement plans.
  • Topic: Budget and Appropriations Fiscal note: This bill has been certified by OLS for a fiscal note.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-02-19 New Jersey Legislature

    Introduced in the Senate, Referred to Senate Budget and Appropriations Committee

Official Summary Text

Provides gross income tax exclusion for minimum required distributions from qualified retirement plans.
Topic:
Budget and Appropriations
Fiscal note:
This bill has been certified by OLS for a fiscal note.

Current Bill Text

Read the full stored bill text 
S3595

SENATE, No. 3595

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 19, 2026

Sponsored by:

Senator� ANTHONY M. BUCCO

District 25 (Morris and Passaic)

SYNOPSIS

���� Provides gross income tax exclusion for minimum
required distributions from qualified retirement plans.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
providing a gross income tax exclusion for minimum
required distributions from qualified retirement plans and supplementing Title
54A of the New Jersey Statutes.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Gross income shall not
include a �minimum required distribution� from a �qualified retirement plan� as
those terms are defined in section 4974 of the federal Internal Revenue Code
(26 U.S.C. s.4974).

���� 2.��� This act shall take
effect immediately and apply to taxable years beginning after enactment.

STATEMENT

���� This bill excludes from the
gross income tax the required distributions from certain retirement plans.

���� Federal law requires a
taxpayer aged 72 or older to withdraw a minimum amount each year from certain
retirement plans, commonly known as a �required minimum distribution� or an
RMD. If the taxpayer does not make the RMD, federal law requires the taxpayer
pay a penalty in the amount of 50 percent of the RMD not withdrawn. In effect,
an RMD is forced income, which is then subject to federal and State income tax.

���� Under this bill, RMDs will no
longer be subject to the New Jersey gross income tax. The exclusion will
benefit many New Jersey seniors by reducing their State income tax burden.